The cattle trade has steadied over the past two weeks as cattle availability begins to tighten, according to analysis by Quality Meat Scotland (QMS).
“After severel months of declining prices, there has been some modest increase in price over the past two weeks for cattle meeting R4L specification”, said Stuart Ashworth, QMS head of economic services.
However, market sentiment remains fragile.
“The latest slaughter statistics show June prime cattle slaughterings across Britain to be 1.5% higher than last year. This is a tighter supply than the 3% year-on-year increase seen in May,” added Mr Ashworth.
The increase has also been noticed by Dingwall & Highland Marts over the past couple of weeks, Ian Tolmie, managing director for the marts said: “There has been a slight improvement in the live ring over the past two weeks, perhaps not majorly so, but it has been noticeable.”
Mr Ashworth added: “Although slaughter volumes in recent weeks remain about 15% higher than year-earlier levels, this is substantially below the 25-30% increase in kill numbers seen at the beginning of June.”
Latest consumer market research by Kantar Worldpanel suggests that over the past 12 months consumer demand for fresh beef has lost ground in volume if not value. However, over the past quarter, the volume of fresh beef purchased by consumers has increased fractionally year on year.
“The UK market does remain well supplied with beef but, with cattle supplies beginning to reduce in the UK and Ireland and consumption showing modest increase, the market position of the primary producer is beginning to strengthen,” added Mr Ashworth.